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From 2007 through 2012, the firm has served as senior manager in connection with tax-exempt and taxable municipal financings exceeding $6.5 billion. The firm's banking staff offers expertise in all major areas of tax-exempt and taxable municipal finance. READ MORE ›

Our book, Strategic Financial Analysis for Higher Education, produced in partnership with KPMG and Attain and now in its seventh edition, has been a valuable reference tool for financial managers, trustees, and other interested parties associated with not-for-profit institutions. READ MORE ›

Prager & Co., LLC was established in 1987 and has grown into a 35-person national firm that provides investment banking, underwriting, financial advisory, and strategic consulting services to municipalities, government agencies, higher education institutions, not-for-profit organizations, foundations, and social service agencies.READ MORE ›

As a consequence of the financial backing of our limited investment members coupled with our net capital position, the firm is able to senior-manage or co-manage bond issues of virtually any size. READ MORE ›

Weekly Market Update

DOES THE PROPOSED AMERICAN HEALTH CARE ACT FULFILL CAMPAIGN PROMISES?

Thursday, March 9, 2017

This past Monday, sections of the draft of the American Health Care Act, which would replace the Affordable Care Act, were released. The bill is expected to be included in the annual budget and can be approved with a majority vote in the Senate. Notably, the draft AHCA bill uses tax credits in lieu of direct subsidies that ACA currently utilizes. The AHCA proposal removes the ACA's requirement that individuals purchase insurance and the associated tax penalty if they don't. The bill would repeal taxes implemented under the ACA but would preserve parts of the ACA that have been praised, including: coverage of people with pre-existing conditions and allowing children to remain on their parents' insurance plan until age 26. At least four GOP senators have stated that they will not vote in favor of a bill that doesn't keep the Medicaid expansion provision in the ACA. Under the ACA, 31 states elected to expand Medicaid coverage and it remains unseen how that will be affected.

In Other News

According to Bloomberg, next week's negotiated municipal supply is expected to be approximately $3.0 billion, of which, approximately $115.2 million is attributable to higher education borrowers.

Per Bloomberg's World Interest Rate Probability, as of March 9th, there is a 100% chance of an interest rate hike at the March FOMC meeting.

This past week, President Trump released a new executive order that places a 90-day travel ban on citizens from six countries holding new visas. The executive order will only affect a small portion of international students studying in the U.S. but has created confusion at U.S. institutions of higher education, due mostly to the perceptions associated with the executive order.

On Monday, the University of California proposed a 20% limit on nonresident undergraduate students. The proposal comes as a response to lawmakers threatening to withhold $18.5 million of government funds if an enrollment cap was not put into place, as well as the difficulties expressed by California residents regarding available spots at any University of California campus.

A potential cut in federal funding to the National Oceanic and Atmospheric Administration (NOAA) could eliminate the Sea Grant program. Sea Grant, whose mission is "to enhance the practical use and conservation of coastal, marine and Great Lakes resources in order to create a sustainable economy and environment," consists of 33 programs and has driven growth in coastal regions.

Last week, the National Council of Nonprofits disseminated a letter for state legislators signatures in protest of the repeal of the Johnson Amendment. The Johnson Amendment prevents 501(c)(3) organizations from endorsing or opposing political candidates. While the Johnson Amendment currently remains intact, the current administration has indicated that they may attempt to repeal it.

When Dowling College closed in 2016, it left behind a $2 million endowment, which is now embroiled in bankruptcy law. The bankruptcy process will ultimately determine whether or not endowment dollars can be used to satisfy creditors.